Seychelles

Introducation

A VAST REGION, the Indian Ocean encompasses an area of
about
73.4 million square kilometers, or roughly 14 percent of
the
earth's surface. The region has been defined variously,
depending
on whether the Antarctic Sea is included. Commonly, the
Indian
Ocean is thought to stretch from East Africa (or
specifically
from the southern tip of Africa at Cape Agulhas where it
meets
the Atlantic) to Tasmania (where it meets the Pacific),
and from
Asia to Antarctica.

Historically, the region has played a prominent
commercial
role in East-West trade since early times. For the
colonial
powers, particularly Britain and France, in the
seventeenth,
eighteenth, and the nineteenth century until the
construction of
the Suez Canal in 1869, the islands of the Indian Ocean
provided
trading posts and refueling locations en route to their
colonies
in the East. More recently, the Indian Ocean was a focal
point of
East-West tension because it served as a route through
which much
oil from the Persian Gulf states passed in shipment to
markets
elsewhere.

By the mid-1990s, as a result of the breakup of the
Soviet
Union and the growing participation in international
affairs of a
number of Indian Ocean littoral states, such as India and
South
Africa, the balance of power and external influences in
the
region had altered markedly. In addition, the island
nations that
constitute the subject of this volume--Madagascar,
Mauritius,
Comoros, Seychelles, and Maldives--have experienced a
growth in
democratic institutions and economic development that has
changed
their relationships to outside powers. For example, the
island
states have tended to follow a nonaligned policy in their
foreign
relations and, reflecting their lack of defense
capabilities,
have sought to promote the Indian Ocean Zone of Peace, in
which
they include littoral states.

Despite their unique aspects, these island nations have
certain features in common. For example, all have been
colonies
or protectorates of either Britain or France. All have
gained
their independence since 1965 (1960 in the case of
Madagascar)
and have been inclined (with the possible exception of
Comoros)
to institute rule based on the dominance of executive
leadership,
specifically based on the personality of one man. This has
been
true even though in several instances such rule may be
under the
guise of socialism. Those islands that adopted socialism
are now
moving toward greater privatization and a free-market
system.

Traditionally, agriculture has been the economic basis
of all
these nations despite the limited land area available for
this
pursuit. As of the early 1990s, however, the nations were
seeking
to diversify their economies, stressing fisheries
development,
tourism, the establishment of export processing zones
(EPZs)
where raw materials are processed and textiles
manufactured, and
industrial development, or the creation of international
commercial centers. Of these island states, only
Madagascar has
significant mineral and energy resources, although
offshore
exploration is taking place near several of the islands.

These island countries consist of multiethnic
societies,
often with several religious faiths, but some are more
homogeneous than others. Notwithstanding this ethnic
diversity,
in a number of the countries human rights have tended to
be
limited, particularly with respect to the rights of women,
workers, and opposition elements. As democratic
institutions are
strengthened and public opinion makes itself felt, most of
the
states are making progress in this regard.

MADAGASCAR

By far the largest of these island nations is
Madagascar,
which, with nearly 600,000 square kilometers, is somewhat
smaller
than Texas. Considered by the
World Bank (see Glossary) as
one of
the world's poorest countries, Madagascar had a population
estimated at 13.5 million in mid-1994. Nearly 80 percent
of the
country's population, which consists of some twenty ethnic
groups, is engaged in the broad agricultural field,
including
fishing. After following a socialist path in the 1970s,
Madagascar in the 1980s, with the advice of the World Bank
and
the International Monetary Fund
(IMF--see Glossary), began
liberalizing its economy by such measures as establishing
an EPZ
like that adopted by Mauritius. Madagascar traditionally
had had
some citizen participation in government through the
fokonolona (village council) system; however, the
country
had been ruled almost singlehandedly by the president,
Didier
Ratsiraka, since 1975. As a result, pressures for greater
political participation overtook economic reforms.

A 1992 referendum voted in a new constitution and
resulted in
multiparty elections in 1993. Opposition leader Albert
Zafy was
elected president; his party, the Forces Vives, gained
one-third
of the National Assembly seats, with the remainder
scattered
among twenty-five parties. In August 1994, Prime Minister
Francisque Ravony announced a new cabinet of twenty-four
ministers, most of whom were reshuffled from the earlier
government but who also reflected a somewhat broader
representation of interests.

Madagascar's budget for 1995, presented to the National
Assembly in December 1994, was an austerity budget
designed to
encourage the country's external funding sources. The
government
aimed to reach a 3.5 percent economic growth rate--the
1994 rate
was only 1.29 percent compared with 2.1 percent in
1993--and to
cut inflation from 32 percent in 1994 (the rate had been
13
percent in 1993) to 15 percent in 1995. In late 1994, the
African
Development Bank considered the steep increase in
inflation as a
potential source of social unrest.

Concurrently, the regime sought to decrease the budget
deficit to 6.5 percent of gross domestic product
(GDP--see Glossary)
in 1995 from 6.76 percent in 1994. Measures to
be taken
entailed minimizing customs and tax exemptions, increasing
tax
collections, and eliminating price controls on certain
products.
In consequence, the government authorized a 15 percent
increase
in expenditures for the various ministries, apart from the
fields
of health and education, which were allowed a 20 percent
increase. Despite these proposed solutions, the economy
faced a
troubled future because 1993 had seen a 13 percent
decrease in
investments as well as a decrease in production. In
addition, the
floating of the currency had resulted in a 50 percent
devaluation
of the Malagasy franc (for value of the
Malagasy franc--see Glossary).

In January 1995, Ravony dismissed both the governor of
the
Central Bank of the Malagasy Republic and the minister of
finance--the former because of his reckless policy
concerning
promissory notes and the latter as a result of his
inability to
control inflation. (The World Bank and the IMF had made
the
dismissal of the Central Bank governor a condition for
their
continued economic assistance.) Among the elements of the
Malagasy economy in need of assistance are the country's
infrastructure, particularly the railroad system, which
suffered
the impact of two major cyclones in 1994. Because of the
shortage
of investment capital to promote economic development in
the EPZ,
the International Finance Corporation
(see
World Bank entry in Glossary)
in mid-1994 established the Madagascar Capital Development
Fund of approximately US, $1.1 million. The
government
also aims to increase tourism and develop its resources of
coal
and petroleum as well as shellfish. These moves, if
implemented,
should ease the problem of unemployment and
underemployment,
especially among young people--60 percent of the
population is
under age twenty-five.

To achieve economic progress, Madagascar has had to
rely on
foreign aid, particularly that from its former colonial
power,
France. Madagascar's major trading partner, France has not
only
provided bilateral aid and loans for specific projects but
also
canceled most of Madagascar's debts. Since South Africa's
abandonment of apartheid, its relations with Madagascar
have also
grown apace, featuring a visit by then South African
President
Frederik Willem de Klerk in 1990 and the establishment of
air and
shipping ties as well as diplomatic relations in 1993.
Both India
and Australia have also sought to strengthen commercial
relations
with Madagascar.

Possibly in part because of its desire to promote
foreign
investment in the country, since 1993 Madagascar appears
to have
paid greater attention to human rights. The United States
Department of State has indicated that once the 1993
election had
occurred, the situation improved because of lack of
violence
between the Forces Vives (pro-Zafy) and the pro-Ratsiraka
groups.
Moreover, the government increased civilian control over
the
military forces and made use of combined commands of
military,
gendarmerie, and national police in implementing national
security. Greater political stability continues to be
essential
in order to promote foreign investment.

MAURITIUS

Mauritius, together with Rodrigues, constitutes part of
the
volcanic chain of the Mascarene Islands; collectively the
islands
are less than half the size of Rhode Island. The country
has a
varied ethnic composition. The constitution recognizes
four
groups: Hindus representing about 52 percent of the
population, a
general category including Creoles and Europeans at about
29
percent, Muslims constituting about 16 percent, and Sino-
Mauritians at about 3 percent. English is the island's
official
language, and both the government and the education system
are
patterned on the British model.

The economy in 1993 had a healthy growth rate of 5.5
percent,
accompanied by an inflation rate of 10.5 percent.
Agriculture
represents the main economic activity; sugarcane, tea,
fresh
vegetables, and cut flowers are the main products. To
diversify
its economy, Mauritius established EPZs in 1971; export
production centers on textiles and wearing apparel. The
government also seeks to encourage tourism and to develop
the
private sector generally. Its economic development is such
that
the world Bank considers it close to becoming an
upper-middle-
income developing country. If it is to reach such a
status, the
economy needs to become more technologically oriented and
capital-intensive as opposed to labor-intensive.

Such economic development is facilitated by the
country's
political system. Mauritius has a multiparty system, which
it has
maintained since independence, and the government
represents a
coalition of several parties. Mauritius became a republic
in
1992, and the president, appointed by the prime minister
and
approved by the elected National Assembly, has a titular
function. In a bye-election for the legislature in late
January
1995, two opposition candidates won. This result has been
viewed
as a warning to Prime Minister Anerood Jugnauth of popular
discontent with his government's policies; the government
coalition only mustered 20 percent of the votes.

A member of the Commonwealth of Nations, Mauritius has
good
relations with the West, particularly France and Britain.
Nonetheless, some tension exists with France over its
claim to
Tromelin Island, and with Britain and the United States
over
Britain's having allowed the United States to establish a
military base on Diego Garcia, claimed by Mauritius.
Mauritius
also has good ties with a number of African, Arab, and Far
Eastern nations.

Mauritius has been a leading exponent of the Indian
Ocean
zone of peace policy and in this and other instances has
sought
cooperation with other Indian Ocean island countries. For
example, meetings of the Seychelles-Mauritius Joint
Cooperation
Commission occurred in late January and early February
1995 on
Mahé Island, Seychelles. The discussions have led to
greater
bilateral cooperation in the fields of education,
industry, and
agriculture. In late March, Mauritius brought together a
number
of Indian Ocean littoral countries: Australia, India,
Kenya,
Oman, and South Africa, together with Mauritius, to
promote
trade, industry, and economic cooperation. The conference
dealt
with such measures as standardizing customs procedures and
promoting investment.

The growth of foreign investment is often considered to
depend, among other factors, on a country's human rights'
record.
With regard to Mauritius, the Department of State has
indicated
that civilians control the paramilitary special mobile
police
force used for internal security purposes. Trials are
considered
to be generally fair. However, the government controls all
communications media, which it uses for political
purposes;
private individuals may not operate broadcasting stations.
Workers' rights are limited. The government has taken some
steps
to improve the rights of women, but they continue to face
"legal
and societal discrimination."

COMOROS

Approximately the same size as Mauritius, Comoros
belongs to
an archipelago of four main islands of volcanic origin. Of
these
islands, Mahoré has continued its relationship with France
and is
not considered part of Comoros. Ethnically, the islands
have a
mixed population consisting of Arabs, African and Malayo-
Indonesian peoples, and Creoles, who are descendants of
French
settlers. About 86 percent are Sunni Muslims, and Islam is
the
state religion. Arabic and French are official languages.
Schools
follow the French education system, but literacy is only
about 50
percent.

The country is among the world's poorest, deriving its
income
primarily from agriculture. Comoros is the world's largest
producer of ylang-ylang used in perfume and the world's
second
largest producer of vanilla; cloves are another major
crop.
Although markets for these products are somewhat unstable,
in
January 1995 Comoros announced major contracts for the
purchase
of cloves with the United Arab Emirates and probably with
India,
and a vanilla purchase contract with the United States.
Because
of the limited growing area, the islands must import most
of
their food. Efforts are underway to develop tourism and
some
forms of industry.

Economic development is linked with recent political
steps
that Comoras has taken. Comoros approved a new
constitution in a
referendum in June 1992, under which the president is
elected by
universal suffrage for a five-year term. The president in
turn
selects the ministers, the prime minister coming from the
majority party in the Federal Assembly. The assembly is
the
elected body of the bicameral legislature; the Electoral
College
appoints the Senate. In October 1994, after much
infighting among
members of the ruling party, President Said Mohamed Djohar
named
a new government, dismissing the previous prime minister,
who had
advocated the privatization of the national airlines, Air
Comores. The airlines issue involved two of the
president's sons-
in-law. The previous prime minister was also unpopular for
implementing a number of economic reforms demanded by the
World
Bank and the IMF.

In late September 1994, the IMF expressed its
"disappointment" with the economic progress of Comoros,
following
the visit of an IMF mission to the island in late August
and
early September. In the first half of 1994, exports
decreased 5
percent in volume compared with 1993; this decrease
occurred in
spite of the 33 percent devaluation of the Comoran franc
(for
value of the
Comoran franc--see Glossary)
in January 1994.
Revenues were "disappointing" because of reduced trade and
failure to recover customs duties due. Most IMF economic
indicators had not been met, and arrears on external debt
had
been reduced only by one-third the targeted amount. As a
result,
the IMF recommended a freeze on 40 percent of budget
amounts for
the offices of the president, the prime minister, and the
Federal
Assembly as well as a freeze on hiring new government
employees
until personnel cuts had been made.

For its economic development, Comoros depended heavily
on
external sources, particularly France. Comoros had good
relations
with France and good regional relations with conservative
Arab
states and members of the Indian Ocean Commission.
Therefore, it
surprised many that in November 1994, while attending the
Franco-
African summit in Biarritz, Djohar announced the
establishment of
diplomatic relations with Israel. However, upon his return
to
Moroni the president amended his statement to indicate
that
diplomatic relations would be regularized only after a
peace
agreement had been signed among Israel, Syria, and Lebanon
and
the issue of Jerusalem had been resolved.

A source of friction in its relations with other
countries is
the government's human rights record. This record did not
improve
in 1994, according to the Department of State, and
featured
restrictions on the right of assembly and freedom of the
press.
Several persons were killed on Mohéli by security forces
in June
1994 in an antigovernment demonstration. Furthermore, a
number of
persons involved in an abortive coup in September 1992
continued
to be held incommunicado without charge or trial in early
1995.
The regime closed the only nongovernment radio station in
1994
and on one occasion refused an opposition party the right
to hold
a rally. Although women have the vote, there are no women
in the
legislature or the cabinet. Unions have the right to
bargain, but
more than 75 percent of the labor force is unemployed so
collective bargaining does not, in fact, occur.

SEYCHELLES

Less than one-quarter the size of Comoros, Seychelles
consists of an archipelago of 115 islands, most coralline
and the
rest granitic. The relatively homogeneous population of
mixed
European and African descent uses three official
languages:
Creole, English, and French, with a claimed literacy of 85
percent.

Seychelles has a comparatively high per capita GDP of
US$5,900 and in the early 1990s was moving away from
socialism
toward a more liberal economy with greater privatization.
Tourism
is the major economic activity because the small area of
cultivable land limits agriculture, and the small market
limits
industry. Fishing has considerable potential for
diversifying the
Seychellois economy. The government is encouraging the
fisheries
sector, and in August 1994 the Western Indian Ocean Tuna
Organization held its meeting on Mahé, with
representatives of
Comoros, Mauritius, and Seychelles present as well as an
observer
from Madagascar. Among topics of discussion was the
standardization of terms for granting fishing permits
because
French, Spanish, and Japanese ships conduct extensive
fishing in
the area. Seychelles alone had fifty-two licensing
agreements in
effect in early 1995, of which thirty-three were with
European
Union countries. Furthermore, the African Development Bank
in
December 1994 was engaged in restructuring the Seychelles
state-
owned tuna processing firm, Conserveries de l'Océan
Indien, to
make it eligible for privatization. In addition to tuna
fishing,
for which Victoria is one of the world's largest ports,
Seychelles seeks to develop its shrimp industry and began
commercial shrimp operations in 1993.

Furthermore, boasting of its good quality
telecommunications
system, its privatization of Victoria port in 1994, and
new
regulations to encourage the private sector, specifically
the
legal environment for investment, Seychelles is promoting
itself
as an international business center. A partial basis for
such
promotion lies in the country's good relations with
Britain,
France, and such littoral states as South Africa, India,
and
Australia. Measures contemplated to further the private
sector
include the establishment of an EPZ and tax measures to
reduce
employer social security contributions for employees.

It is difficult to reconcile some of these proposed
steps
with the World Bank's 1993 report entitled Poverty in
Paradise (Mark Twain had also referred to Seychelles
as
"paradise"). According to the report, "In 1993, almost 20
percent
of the population were estimated to be living below the
poverty
line" of 900 Seychelles rupees (for value of the
Seychelles rupee--see Glossary),
or about US$195 per household per
month.
The World Bank criticized Seychelles's relatively low
expenditure
on education, especially secondary education, and the
resultant
lack of qualified workers in the education, health,
finance, and
construction fields. In spite of this criticism, the 1995
budget
announced by the Ministry of Finance in late 1994 proposed
a
further 21 percent cut in the education budget, thereby
exacerbating the situation with regard to qualified
workers.

The relationship of the economy to the country's
political
system has been very close because Seychelles has followed
a
socialist form of government. Having gained its
independence from
Britain in 1976, Seychelles became a one-party socialist
state
under President France Albert René in 1977. After adopting
a new
constitution by referendum in 1992, Seychelles held its
first
multiparty elections in 1993. René was reelected, and his
Seychelles People's Progressive Front (SPPF) won
twenty-seven of
the thirty-three seats in the People's Assembly (some
election
irregularities are considered to have taken place). As a
result
of political patronage, control of jobs, government
contracts,
and resources, the Department of State indicated that the
SPPF
dominated the country. Moreover, the president completely
controlled the security apparatus, including the national
guard,
the army, the police, and an armed paramilitary unit.

In 1994 progress was made with regard to human rights
under
this controlled structure. However, the government has a
"near
monopoly on the media," and freedom of speech and press
are
limited by the ease with which law suits can be brought
against
journalists. In addition, because the leadership of both
the SPPF
and most opposition parties is white, despite the Creole
popular
majority, there is a perception that nonwhites lack a
significant
voice.

MALDIVES

Maldives, smaller in area than Seychelles, includes
some
1,200 coralline islands grouped in a double chain of
nineteen
atolls. The majority of these islands, which range from
one to
two square kilometers in area, are uninhabited. The people
represent a homogeneous mixture of Sinhalese, Dravidian,
Arab,
Australasian, and African groups who speak a Dhivehi
language.
Sunni Muslims in faith, most Maldivians attend Quranic
schools.
Islam is the official religion, all citizens must be
Muslims, and
the practice of a faith other than Islam is forbidden. The
country claims 98 percent literacy.

Ranked by the United Nations as one of the world's
least
developed countries, Maldives has a GDP based 17 percent
on
tourism; 15 percent on fishing, which is undergoing
further
development; and 10 percent on agriculture. Maldives' 1994
annual
per capita income of US$620 is twice that of India.
Maldives has
some 17,000 foreign workers, many from India and Sri
Lanka, most
of whom are employed in resort hotels so that Maldivian
Muslims
need not serve alcoholic beverages.

Possibly in keeping with its more traditional culture,
the
country has a highly centralized presidential government,
based
on its 1968 constitution. Maumoon Abdul Gayoom, who has
ruled
since 1978, was reelected president for a five-year term
in 1993.
Members of the unicameral Majlis, or legislature, also
serve
five-year terms; forty are elected, and eight are
appointed by
the president. The president, who exercises control over
most
aspects of the country, also holds the posts of minister
of
defense and minister of finance. Political parties are
officially
discouraged as contrary to homogeneity. Maldives follows a
nonalignment policy with regard to foreign affairs but as
a
member of the Commonwealth of Nations has particularly
close
relations with Britain.

The somewhat authoritarian nature of the government is
reflected in the country's record on human rights. The
Department
of State has indicated that in 1994 Maldives restricted
freedom
of speech, press, and religion. Instances also occurred of
arbitrary arrest and incommunicado detention of
individuals as
well as banishment to distant atolls. Although civil law
exists,
Islamic sharia law also applies and has limited the rights
of
women; for example, in accordance with Muslim practice,
the
testimony of one man is equivalent to that of two women.
Nonetheless, in 1994 two women served in the Majlis and
one in
the cabinet. The rights of workers are also limited in
that they
may not form unions or strike. Freedom of the press was
advanced
somewhat in 1994 with the government's establishment of a
Press
Council designed to protect journalists.

* * *

The degree to which Madagascar, Mauritius, Comoros,
Seychelles, and Maldives will separately and collectively
promote
democratic institutions, human rights, and economic
development
and diversification in the late 1990s remains to be seen.
These
island nations, with the exception of Maldives (which is
located
considerably to the northeast of the others), have already
formed
a common body, the Indian Ocean Commission, which seeks to
promote commercial and social aspects of their
relationship.
Conceivably, the commission may broaden its concerns to
include
such areas as overall economic policy and defense matters.
The
amount of cooperation that may develop among these island
states
will depend to a great extent on the relative sense of
stability
and security of each of the nations involved.